here is a tip on troubleshooting modulation problems
in these radios.
there is a built-in audio generator.
the "roger beep"
strong roger beep audio is fed in before that
mentioned double op-amp.
usually on these radios, the AMC and ALC is turned off,
and/or the components cut out. You hear it all the time,
the roger beep over modulates the signal. maybe causing
other problems, that I have seen.
Turn on the roger-beep. test that, for a over modulated
AM signal. if so, then the problem is up around the
MIC input circuit. you can check FM and SSB also.
A good fast test to get in the right direction of
low modulation problems.
I had a few of these RCI/Galaxy radio with weak AM TX.
Normal carrier power, low amplitude modulation.
the roger beep signal was piss-weak also.
The problem was that big electrolytic capacitor
in the modulator section C190, in series with the 15 ohm resistor.
I had another guys added external amp acting up.
told him to turn the roger-beep off. then all OK.
that is my $.05 worth (a nickel's worth) (inflation, and no more penny's)